Stocks fall for first time in seven days as chemical company FMC slips
NEW YORK — Stocks fell for the first time in seven days, ending a run that had pushed the indexes to all-time highs, as investors assessed corporate news.
Chemical company FMC fell the most in the Standard & Poor's 500 index after cutting its earnings forecast for the second quarter because its Agricultural Solutions unit performed worse than expected in the period. General Electric and Wisconsin Energy both dropped upon announcing acquisitions.
The stock market has climbed steadily in the past two months amid signs that the economy has recovered its momentum from the disruption of an unusually harsh winter.
Stronger growth should translate into higher corporate profits.
“The market has had a good run, and it needs to pause,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
The S&P 500 fell a fraction of a point, or less than 0.1 percent, to 1,962.61. The index closed at a record 1,962.87 on Friday. The Dow Jones industrial average dropped 9.82 points, or less than 0.1 percent, to 16,937.26. The Nasdaq composite index edged up 0.64 point, or less than 0.01 percent, to 4,368.68.
FMC dropped $3.65, or 4.9 percent, to $71.10 after the company lowered its earnings forecast for the second quarter, saying the impact of the cold winter had been much stronger than it had originally anticipated.
Investors were watching deal news that produced winners and losers.
General Electric dropped 29 cents, or 1.1 percent, to $26.68 upon agreeing to acquire most of the power generation business belonging to Alstom, a French company. Wisconsin Energy fell $1.62, or 3.5 percent, to $45.27 after the company said that it was buying Integrys Energy for $5.8 billion.
Integrys was among the winners. The company's stock jumped $7.40, or 12.1 percent, to $68.35 on the news.
Micros Systems gained on deal news. The software company's stock rose $2.21, or 3.4 percent, to $67.98 when Oracle said it was buying the company for about $5.3 billion.
The stock market may be heading for a summer lull after its latest record-setting run, as investors wait for more confirmation that the economic outlook is improving, said Scott Wren, a senior equity strategist at Wells Fargo Advisors. The S&P 500 is up 6.2 percent for the year after trading mostly sideways for the first three months of the year.
“After the big run we've had over the past couple of months, a week or two of consolidation isn't anything out of the ordinary,” Wren said.
In government bond trading, prices edged lower. The yield on the 10-year Treasury note, which moves in the opposite direction from its price, rose to 2.62 percent.
The price of oil fell 66 cents, or 0.6 percent, to $106.17 a barrel.
Lululemon rose $1.02, or 2.5 percent, to $41.25 when The Wall Street Journal reported that the company's founder was working with Goldman Sachs to shake up the yoga clothing company's board.
Lululemon's stock is down 30 percent this year as the company works on improving its business since pulling one of its popular yoga pants from stores last spring because they were too sheer.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Coal stocks on a roller coaster ride they can’t get off
- PPG’s new CEO to push organic growth with existing clients
- Idea Foundry CEO Matesic decides which new companies get help from his Pittsburgh business incubator
- Coal company, UMW settle suit over use of non-union workers
- Protecting your identity from hackers
- Steelworkers union says ATI talks to resume
- Judge rules against PPG in lawsuit over pollution
- Comcast sets digital sights on millenials
- America picks up China’s slack in auto sales
- U.S. stocks plunge after bleak Chinese manufacturing report
- Stock market looks calm compared to oil